APICS MPR Vocabulary CPIM
Abnormal demand/outlier - answer Demand in any period that is outside the limits
established by management policy. May come from a new customer or from existing
customers whose own demand is increasing/decreasing. (Is it a volume change/change
in product mix/related to timing of order?) SYN: outlier
actual demand - answer Composed of customer orders or allocations of items,
ingredients or raw materials to production or distribution. Actual demand nets against or
consumes the forecast.
adaptive smoothing - answer A form of exponential smoothing in which the smoothing
constant is automatically adjusted as a function of forecast error measurement.
advanced planning and scheduling - answer(APS) Techniques that deal with analysis
and planning of logistics and manufacturing during short, intermediate and long-term
periods. Describes any computer program that uses advanced mathematical algorithms
or logic to perform optimization or simulation on finite capacity scheduling, sourcing,
capital planning, resource planning, forecasting, demand management, etc.
APS - answeradvanced planning and scheduling
Five Main Components of APS - answer1.) Demand Planning
2.) Production Planning
3.) Production Scheduling
4.) Distribution Planning
5.) Transportation Planning
aggregate forecast - answerAn estimate of sales, often time-phased, for a grouping of
products or product families. Stated in terms of units, dollars, or both. Used for sales
and production planning.
aggregate plan - answerA plan that includes budgeted levels of finished goods,
inventory, production backlogs and changes in the workforce to support the production
strategy. Aggregated information is used (e.g. product line, family) rather than product
information.
allocation/assignment - answer1.) The classification of quantities of items that have
been assigned to specific orders but have not yet been released from the stockroom to
production. And "uncashed" stockroom requisition.
2.) A process used to distribute material in short supply. SYN: assignment.
, alpha factor/smoothing constant - answerIn exponential smoothing, the weighting factor
that is applied to the most recent demand, observation, or error. In this case, the error is
defined as the difference between actual demand and the forecast for the most recent
period. The weighting factor is represented by the symbol (alpha). Theoretically, the
range of alpha is 0.0 to 1.
base series/base index - answerA standard succession of values of demand-over-time
data used in forecasting seasonal items. The series is usually based on the relative
level of demand during the corresponding period of previous years. The average value
of the base series in a seasonal cycle will be 1.0. A figure higher than 1.0 indicates that
the demand for that period is more than average; a figure less thn 1.0 indicates less
than average. SYN: base index.
benchmarking - answerComparing a company's costs, products and services to that of
a company thought to have superior performance.
Seven Types of Benchmarking - answer1.) competitive benchmarking
2.) financial benchmarking
3.) functional benchmarking
4.) performance benchmarking
5.) process benchmarking
6.) product benchmarking
7.) strategic benchmarking
bill of distribution/distribution network structure - answerThe planned channels of
inventory disbursement form one or more sources to field warehouses and ultimately
the customer.
bill of resources/bill of capacity - answerA listing of the required capacity and key
resources needed to manufacture one unit of a selected item or family. RCCP uses
these bills to calculate the approximate capacity requirements of the MPS. SYN: bill of
capacity.
bottom-up replanning - answerIn MRP, the process of using pegging data to solve
material availability or other problems. The planner evaluates the effects of possible
solutions including compressing lead time, cutting order quantity, substituting material
and changing the master schedule.
bucketed system - answerAn MRP, DRP, or other time-phased system in which all time-
phased data are accumulated into time periods called buckets. (e.g. weekly buckets,
monthly buckets)
bucketless system - answerAn MRP, DRP, or other time-phased system in which all
time-phased data are processed, stored, and usually displayed using dated records
rather than defined time periods.
Abnormal demand/outlier - answer Demand in any period that is outside the limits
established by management policy. May come from a new customer or from existing
customers whose own demand is increasing/decreasing. (Is it a volume change/change
in product mix/related to timing of order?) SYN: outlier
actual demand - answer Composed of customer orders or allocations of items,
ingredients or raw materials to production or distribution. Actual demand nets against or
consumes the forecast.
adaptive smoothing - answer A form of exponential smoothing in which the smoothing
constant is automatically adjusted as a function of forecast error measurement.
advanced planning and scheduling - answer(APS) Techniques that deal with analysis
and planning of logistics and manufacturing during short, intermediate and long-term
periods. Describes any computer program that uses advanced mathematical algorithms
or logic to perform optimization or simulation on finite capacity scheduling, sourcing,
capital planning, resource planning, forecasting, demand management, etc.
APS - answeradvanced planning and scheduling
Five Main Components of APS - answer1.) Demand Planning
2.) Production Planning
3.) Production Scheduling
4.) Distribution Planning
5.) Transportation Planning
aggregate forecast - answerAn estimate of sales, often time-phased, for a grouping of
products or product families. Stated in terms of units, dollars, or both. Used for sales
and production planning.
aggregate plan - answerA plan that includes budgeted levels of finished goods,
inventory, production backlogs and changes in the workforce to support the production
strategy. Aggregated information is used (e.g. product line, family) rather than product
information.
allocation/assignment - answer1.) The classification of quantities of items that have
been assigned to specific orders but have not yet been released from the stockroom to
production. And "uncashed" stockroom requisition.
2.) A process used to distribute material in short supply. SYN: assignment.
, alpha factor/smoothing constant - answerIn exponential smoothing, the weighting factor
that is applied to the most recent demand, observation, or error. In this case, the error is
defined as the difference between actual demand and the forecast for the most recent
period. The weighting factor is represented by the symbol (alpha). Theoretically, the
range of alpha is 0.0 to 1.
base series/base index - answerA standard succession of values of demand-over-time
data used in forecasting seasonal items. The series is usually based on the relative
level of demand during the corresponding period of previous years. The average value
of the base series in a seasonal cycle will be 1.0. A figure higher than 1.0 indicates that
the demand for that period is more than average; a figure less thn 1.0 indicates less
than average. SYN: base index.
benchmarking - answerComparing a company's costs, products and services to that of
a company thought to have superior performance.
Seven Types of Benchmarking - answer1.) competitive benchmarking
2.) financial benchmarking
3.) functional benchmarking
4.) performance benchmarking
5.) process benchmarking
6.) product benchmarking
7.) strategic benchmarking
bill of distribution/distribution network structure - answerThe planned channels of
inventory disbursement form one or more sources to field warehouses and ultimately
the customer.
bill of resources/bill of capacity - answerA listing of the required capacity and key
resources needed to manufacture one unit of a selected item or family. RCCP uses
these bills to calculate the approximate capacity requirements of the MPS. SYN: bill of
capacity.
bottom-up replanning - answerIn MRP, the process of using pegging data to solve
material availability or other problems. The planner evaluates the effects of possible
solutions including compressing lead time, cutting order quantity, substituting material
and changing the master schedule.
bucketed system - answerAn MRP, DRP, or other time-phased system in which all time-
phased data are accumulated into time periods called buckets. (e.g. weekly buckets,
monthly buckets)
bucketless system - answerAn MRP, DRP, or other time-phased system in which all
time-phased data are processed, stored, and usually displayed using dated records
rather than defined time periods.
